Setting Up An Education Business in Vietnam

Vietnam’s education sector is experiencing rapid growth, with the higher education market projected to expand by USD 616.5 million between 2025 and 2029. This surge presents a compelling opportunity for those interested in establishing educational institutions in the country. 

However, setting up an education business in Vietnam involves navigating a complex regulatory framework, including licensing, curriculum approvals, and compliance with local labor laws. Understanding these requirements is crucial to ensuring a smooth and legally compliant operation.

Overview of Vietnam’s Education Sector

Common Educational Business Models in Vietnam

The country’s education landscape is diverse, driven by a mix of traditional schools, private institutions, and innovative digital platforms. As demand for global-standard education and career-focused training rises, key sectors like language learning, international schools, and vocational training are seeing rapid growth:

• Language Centers and EdTech: English and foreign language training remain in high demand, both through traditional language centers and digital learning platforms. EdTech solutions, including AI-driven tutoring, online courses, and mobile learning apps, are increasingly popular, offering scalable and innovative education models.
• International and Private Schools: Many expatriates and affluent Vietnamese families seek international-standard K-12 education. Schools offering IB, Cambridge, or American curricula attract strong enrollment, and you can benefit from favorable policies supporting premium education services.
• Vocational Training and Workforce Development: Vocational training institutes play a crucial role in developing skills for industries such as IT, hospitality, healthcare, and manufacturing. The government actively supports these initiatives, offering incentives to institutions that align with workforce demands.

Investment Incentives For Your Foreign Education Business in Vietnam

Recognizing education as a key driver of economic growth, the Vietnamese government actively supports education businesses. Incentives such as tax benefits, land leasing support, and funding for skill-focused and tech-driven learning initiatives make it easier to establish and scale operations in the country.

• Tax and Financial Incentives: Education businesses, especially international schools and vocational training institutions, can benefit from:
  • Corporate Income Tax Reductions: Schools and training centers may qualify for preferential tax rates as low as 10% (instead of the standard 20%) for a set period.
  • Import Duty Exemptions: Exemptions on imported equipment and teaching materials that are not available locally.
  • VAT Exemptions: Educational services such as tuition fees and vocational training courses are often exempt from value-added tax (VAT), reducing operational costs.
• Land Leasing Support: The government provides favorable leasing policies for education investors, including:
  • Reduced Land Rental Fees: Schools, training centers, and EdTech hubs can receive discounted long-term land leases, particularly in government-designated zones such as the Saigon Hi-Tech Park in Ho Chi Minh City or Hoa Lac Hi-Tech Park in Hanoi, which also support research-based education initiatives.
  • Priority Access to Prime Locations: Some provinces offer incentives such as land-use fee waivers or lower-cost leasing rates for institutions that align with regional development goals.
• Government Support for Innovation:
  • Funding for Vocational Training: The government collaborates with businesses to improve workforce skills, particularly in high-demand industries like IT, engineering, and hospitality.
  • Support for Digital Education: Policies like Decision 1373/QD-TTg and Decision 131/QD-TTg promote the integration of digital technologies in education, fostering a supportive ecosystem for EdTech companies. These policies create opportunities for partnerships, funding, and regulatory support for digital learning solutions.
  • Public-Private Partnerships (PPPs): The government encourages collaboration between private education providers and public institutions, allowing foreign businesses to co-develop curricula or operate within state-supported education infrastructure.

How to Set Up An Education Business in Vietnam

Key Requirements for Operating An Education Company 

Entering Vietnam’s education sector comes with both opportunities and regulatory challenges. To operate legally, education businesses must meet licensing, curriculum, and labor law requirements set by government authorities such as:

• Ministry of Education and Training (MOET) Regulations: MOET oversees education policies, curriculum approvals, and teacher qualifications. If you are opening a K-12 school, vocational training center, or other regulated institution, MOET approval is required to ensure your curriculum meets national standards.
• Investment Registration Certificate (IRC) and Enterprise Registration Certificate (ERC): These two certificates, issued by the Department of Planning and Investment (DPI), are mandatory for establishing any foreign-owned business in Vietnam. To obtain the IRC, you must submit a business plan, financial projections, and proof of investment capital. Upon IRC approval, you can apply for the ERC, which legally registers your company and allows you to start operations.
• Special Licensing for K-12 Schools and Vocational Training Centers: Schools and training centers require further approval from local education authorities. This includes verifying your curriculum, teacher qualifications, facilities, and student safety measures.
• Compliance with Local Education and Labor Laws: Hiring foreign teachers requires work permits and visa approvals. Furthermore, all employees must be registered for social insurance and labor contracts. Regular audits ensure compliance with these labor laws and student protection policies.

How to Set Up An Education Business in Vietnam

Expanding into Vietnam’s education sector requires navigating strict regulatory requirements. From business registration to curriculum approvals, every step must comply with government regulations to ensure smooth operations: 

1. Choose a Business Structure: Decide between a 100% foreign-owned company, a joint venture with a local partner, or a Public-Private Partnership (PPP):
   1. 100% Foreign-Owned: As a fully foreign-owned business, you will have complete control over your operations but must navigate licensing and regulatory requirements for foreign entities.
   2. Joint Venture: This structure allows for shared investment and management with a local partner, making it easier to navigate local regulations and benefit from local knowledge.
   3. Public-Private Partnership (PPP): This model enables collaboration between private investors and public institutions, which can be a strong strategy, particularly for vocational training and government-backed educational projects.
2. Register Your Business: Submit application for the IRC and ERC to the DPI. The process typically takes 4 to 6 weeks, depending on the completeness of your application.
3. Secure Additional Approvals: If the business involves K-12 education or vocational training, you must obtain MOET approval for curriculum purposes, teacher credentials, and facility standards. This step ensures that the institution meets Vietnam’s educational quality requirements.
4. Ensure Compliance with Tax and Labor Laws: All education businesses must file annual tax reports, comply with local labor laws, and register employees for social insurance.

Navigating Vietnam’s regulatory framework can be complex, but Emerhub can assist with the process by handling business registration, licensing, tax compliance, and payroll management. From obtaining MOET approvals to securing work permits for foreign teachers, Emerhub ensures a seamless and compliant setup.

How to Hire Foreign Education Specialists and Teachers

Visa and Work Permits for Foreign Teachers and Staff in Vietnam

Ensuring that foreign teachers and education specialists have the proper visa and work permit is crucial for legal employment in Vietnam. Without the right documentation, both you and your employees risk fines, deportation, or operational disruptions. To qualify for a Vietnamese work permit, foreign teachers must meet specific requirements, including:

• A university degree or higher in education or a related field.
• A teaching certification (e.g., TEFL, TESOL, CELTA) for language instructors.
• At least three years of relevant teaching experience in some cases.
• A health check and criminal background clearance from their home country or Vietnam.

The applicable visa types for foreign educators include:

• Business Visa (DN Visa): Suitable for short-term work-related activities, such as guest lectures, training sessions, or attending education conferences.
• Work Visa (LD Visa): Required for foreign teachers employed on a long-term basis. The LD1 or LD2 visa is issued once the work permit is secured and allows for extended stays in Vietnam.
• Temporary Residence Card (TRC): After obtaining a work visa, foreign teachers can apply for a TRC, which allows them to stay in Vietnam for up to two years without needing frequent visa renewals.

Hiring foreign teachers involves understanding complex regulations, which can be challenging without local expertise. Emerhub provides comprehensive support, ensuring your institution meets all legal requirements for work permits, visas, and labor compliance. With our assistance, you can avoid administrative hurdles, minimize delays, and focus on delivering quality education.

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